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A ocmpany can adjust (descrease) the accrued output VAT amount if the following happens:

1. The company writes off the customer bad debt and notifies the customer about it.
2. The goods / services have been received by the customer.
3. No payment was received after more than 6 months from the shipment date. 

The company should create the following documents:

1)      Credit Note (Mutual Settlements Adjustment) на сумму списываемой задолженности.

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3)      Tax Credit Note на основании Output VAT Transaction.

Company can adjust (descrease) the accrued output VAT amount if the following happens:

1. The company writes off the customer bad debt and notifies the customer about it.
2. The goods / services have been received by the customer.
3. No payment was received after more than 6 months from the shipment date. 

How to process

1)      Credit Note (Mutual Settlements Adjustment) на сумму списываемой задолженности.

How to process

1)   Create a Credit Note (with the Mutual Settlements Adjustment as the transaction type) in the amount written off.

1. Click Create to create a new Output VAT Transaction.
2. In the Company box, select the customer.
3. In the Transaction Type field, select Mutual Settlements Adjustment.
4. Make sure the link below the fields contains Prices Include VAT. Otherwise, click the link to open the Prices and Currency dialog box, select the Prices Include VAT check box there, and close the dialog box.

2) Create an Output VAT Transaction to decrease the total output VAT.

Where: Accounting > Value Added Tax > Output VAT  Transactions

1. Click Create to create a new Output VAT Transaction.
2. In the Company box, select the customer.
3. In the Transaction Type field, select Invoice.
4. In the Adjustment Type field, select Decrease.
5. Make sure the link below the fields contains Prices Include VAT. Otherwise, click the link to open the Prices and Currency dialog box, select the Prices Include VAT check box there, and close the dialog box.
   
   
   
6. Click Save to assign the number to this document.
7. On the Inventory/Services tab, click Add to append a new line.
8. In the Contents column enter any comment for the transaction, for instance Debt writeoff.
9. In the Amount column, enter the written off amount about which your company has notified the customer.
10. In the VAT, % column, select the standard rate, 5% Rate.
    
    
11. Click Post to register the document in the system.

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